Riding The Wave News Summary 76

Why DeFi Speculators Are Borrowing Ethereum as Merge Looms, Here’s why Terra Classic price has soared by 250% in September, & more.

Sep 11, 2022

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unusual_whales @unusual_whales

Home prices declined 0.77% from June to July, the first monthly fall in three years. This is the largest single-month decline since January 2011. It is also the second-worst July performance ever, behind the 0.9% decline in July 2010, during the Great Recession.

Lucid @LucidCiC

Imagine being Bullish about Ethereum's Proof of Locked ETH consensus mechanism knowing it will take at least another year to build out the withdrawal functionality.🤦 They wanted to rush it to market so badly that they aren't even worried about people being able to withdraw. Smh

The Kobeissi Letter @KobeissiLetter

Housing market update: 1. Houses selling below asking on average, first since 2020 2. Housing starts in July down 19% 3. Inventory at highest since 2020 4. Existing home sales down 26% in 6 months 5. Average mortgage payment up 40% since last year The collapse has started.

Alf @MacroAlf

An interesting stat: almost half of the S&P 500 constituents cited ''recession'' during their Q2 earnings calls. That's the highest in 10 years. Financials and Real Estate companies (roughly 80%) lead the pack in mentioning recession risks.

Giancarlo @GiancarloChaux

I'd say the probability that mr. beast launches NFTs within a few years is close to 100%, and no they won't be scarce pfp collections with airdrop ponzinomics the intersection between content and on chain experiences is completely unexplored today but will onboard millions

Root 🥕 @therationalroot

Short-term & Long-term Holder cost basis will soon cross which historically coincided with days of the bear market bottom. STH currently at 24.3k and LTH at 23.2k. #Bitcoin

unusual_whales @unusual_whales

More Americans are using buy now, pay later services for groceries than ever before, per CNBC.

Watcher.Guru @WatcherGuru

The total number of #Ethereum name service registrations (ENS) has surpassed 2.3 million.

Compounding Quality @QCompounding

“As soon as you realize you can afford to wait out any correction, the calamity also becomes an opportunity to pick up bargains. To me, a price-drop is an opportunity to load up on bargains.” Peter Lynch

Alf @MacroAlf

For the first time in 18 months, US homes are selling on average below their asking price. The Fed wants the housing market to cool down. And they'll get it to cool down.

Compounding Quality @QCompounding

Percentage gains needed to fully recover from a loss:

Watcher.Guru @WatcherGuru

JUST IN: MicroStrategy's SEC filings reveal the company is considering selling $500 million in stock to purchase more #Bitcoin

Why DeFi Speculators Are Borrowing Ethereum as Merge Looms

With Ethereum’s merge event just days away, the entire industry is preparing for the network’s most highly-anticipated upgrade.
Bounty hunters are on the lookout for any bugs in the code; blockchain firm ConsenSys is launching so-called "sustainable" NFTs to celebrate the occasion; and crypto exchanges are making room for another potential fork of the Ethereum blockchain.

DeFi degens are also keeping a close eye on any possible fork. If that were to happen, it would mean that anyone holding ETH at the time of the fork would also earn another airdropped token for the new chain.
For those who were trading crypto back in 2017, you’ll remember that Bitcoin holders earned free Bitcoin Cash (BCH), Bitcoin Gold (BTG), and even something called Bitcoin Diamond (BCD) thanks to various forks of the original cryptocurrency.

And while Guo attempts to rally the mining troops to execute their fork, degens are borrowing tons of ETH in hopes of also enjoying a windfall of the forked coin (which will apparently carry the ticker ETHPoW).
The borrowing has been so excessive that some protocols are making moves to limit how much can be doled out. Aave, the popular lending and borrowing protocol, has actually just paused ETH borrowing because of this massive demand.

Finally, something that Ethereum borrowers should be reminded of is that none of these platforms are going to call you up and tell you that the cost of borrowing has just skyrocketed to 1,000%. It will just happen.

With the majority of Ethereum tokens committing to moving to the POS chain and only supporting it, I would be surprised if these loans worked out. On the other hand, it does provide a way for Ethereum investors to protect themselves whichever way the fork situation works out.

Full Article

Here’s why Terra Classic price has soared by 250% in September

The profits in the Terra Classic market appeared despite its association with the defunct Terra (LUNA) token, a $40 billion project that collapsed in May. Terra Classic is a rebranded version of the same Terra project and thus has been the subject of skepticism from analysts and investors since its debut.
But, traders have ignored such warnings in recent weeks, with a flurry of fundamental catalysts influencing them to purchase LUNC.

A new staking service went live on the Terra Classic chain on Aug. 27, serving as the first major cue behind the ongoing LUNC price rally.
According to LuncStaking_Bot, users have staked more than 610 billion LUNC with Terra Classic against its net supply of 6.9 trillion units. In other words, nearly 9% of the total LUNC supply has been removed from circulation.

In addition to staking, Terra Classic developers have also introduced a token-burning mechanism to boost LUNC’s scarcity.
Terra Classic’s community member Edward Kim proposed to impose a 1.2% transaction tax on LUNC on-chain transactions at the beginning of September. The proceedings made from this tax would eventually end up in a dead address, thereby permanently removing a portion of LUNC’s supply from circulation.

This is likely a short-term situation unless LUNC became a meme coin, I wouldn’t expect this to continue.

Full Article

Ethereum Successfully Deploys Final Network Test Before Merge

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